The National Association of Realtors is reporting that existing home sales are on the rise throughout the country, with increased sales expected into next year. The same predictions are also being made for Los Angeles as well as the rest of the state. Not only are residential sales expected to increase, but so are commercial sales within the region.
National and Regional Home Sales
Last year, many experts predicted that homebuyers would become more active in 2014. While the year did see some improvements, it didn’t see the boost that was expected because prices still remained too high for many buyers. For the rest of this year and into next year, this is expected to change despite a predicted four percent increase in the median sales price.
It is no secret that home price growth has increased much faster than income growth in Southern California over the past couple of years. In fact, recent data indicates home price appreciation has outpaced wage growth by a ration of 13 to 1. Furthermore, home prices in Los Angeles rose within all property tiers during the first six months of 2015. Furthermore, the number of homes on the market in Los Angeles remains below historic norms. This has resulted in bidding wars on the little inventory that is available. While normal price value growth is considered to be between 3 to 5 percent Los Angeles has experienced a 5.2 percent increase when comparing June 2015 to June 2014. As such, the median sales price for a home in Los Angeles has reached nearly $540,000.
When comparing today’s figures to those that were gathered in year 2000, home prices in Los Angeles are up by 126 percent. This is the largest increase in home price appreciation of any U.S. city over the last 15 years. When looking at statewide data, the entire state of California is going quite well. Not only are low-tier property prices 9 percent higher than they were last year, but average mid-tier prices were 7 percent higher. Of course, this also translates to high-tier properties, which were 6 percent higher this year than last year.
Not only is California a hot market for residential real estate, but commercial construction activity is also at the highest level it has been since 2001. According to a recent UCLA report, this trend is likely to continue over the next three years. This prediction is largely based on survey results, which found that developers are optimistic about the future. 40 percent of those surveyed in Southern California said they plan to begin at least one new project in the next 12 months. Meanwhile, only 23 percent of them began one or more new developments over the past 12 months.
According to the UCLA report, the boom in activity has likely been sparked by a number of factors. These include an increase in available financing, low cap rates, a high demand from companies and a shortage of multi-family housing. The study found that demand has shifted from a strong emphasis on single-family housing to a more mixed balance of single-family and multi-family housing.
If you are interested in exploring the most exclusive neighborhoods in Los Angeles, please contact our team of professional luxury real estate experts and help you search for your dream home. While you wait to consult one of our experts, feel free to browse through some of our listings below priced from $30 Million to $60 Million.
$50,000,000 : 920 S Hill Street, Los Angeles0 beds, 0 bath
$30,000,000 : 568 N TIGERTAIL Road, Los Angeles8 beds, 0 baths
$44,000,000 : 1677 N DOHENY Drive, Los Angeles5 beds, 8 baths
$39,900,000 : 2911 ANTELO VIEW Drive, Los Angeles6 beds, 8 baths
$38,000,000 : 9199 THRASHER Avenue, Los Angeles5 beds, 9 baths
See all City of Los Angeles Luxury Homes For Sale.
(all data current as of 7/24/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.